ASML a Golden Rule Company Led by Christophe Fouquet
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This little-known Dutch company epitomizes stakeholder capitalism. It focuses on enhancing returns for investors only by creating value for customers, employees, distribution and supply chain partners.Click here to subscribe to the ESM weekly e-newsletter.
Given that ESM is an international publication, this week we select ASML for the Golden Rule designation. ASML is the Dutch maker of the world’s most sophisticated chip production machines— its extreme ultraviolet (EUV) lithography system is considered critical to making the most advanced chips used in AI.
This company is the essence of the stakeholder capitalism model. Founded about 40 years ago to create chip manufacturing machines, ASML spent 17 years developing its most advanced EUV lithography technology, after earlier pioneering work with its PAS photo-electronic machine technology.
Today, the company employs about 23,000 people in the Netherlands, 8,300 in the US and globally about 44,000.
Its CEO Christophe Fouquet gets a 91% approval rating on Glassdoor and 85% would recommend the company to a friend. Click here to check out the company’s US employee benefits and here to read its annual sustainability report. (The benefits for Dutch employees are even more generous.)ASML's leadership emphasizes a strategy that balances investor returns with value creation for customers, employees, distribution and supply chain partners and communities. It is known for a rigorous customer-centric approach with a focus on continuous improvement; strong industry partnerships; a long-term financial strategy to help ensure sustainable growth while returning cash to shareholders through dividends and share buybacks and clearly integrates ESG considerations into its business strategy.
The company says, “Our aim is to create long-term sustainable value for our stakeholders, while also contributing to the United Nations’ Sustainable Development Goals (SDGs)....Our ESG (environmental, social, governance) sustainability strategy extends from our production operations, logistics and business facilities, to our suppliers, and our products and services, including their downstream impact. We have identified the nine key themes across E, S and G where we can reduce the negative impact and amplify the positive.”
Shareholders have benefited. With a five-year gain of 145%, the company’s stock exceeded the S&P 500 of 123% over the same period, not including dividend payments.
The world would be a better place if every company were managed this way.
Click here for the growing list of Golden Rule companies and leaders.
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Contact: Bruce Bolger at TheICEE.org; 914-591-7600, ext. 230.
